How to Raise a Business Credit Score

When a business attempts to secure a loan, one of the primary approval factors is the business credit score. A low credit score can cause a loan rejection. A low credit score also affects the approved loan in the form of high interest rates and other less favorable loan terms. Every business should attempt to raise a business credit score because it only requires a few steps and the benefits are substantial.

Difficulty: Moderately Challenging

Instructions

1. Pay all of the existing business credit accounts in a timely fashion. One of the main components that will raise a business credit score, is having all of the business accounts in good standing with no late payments on the business credit record.

2. Keep the revolving credit accounts paid. Revolving or unsecured business accounts with a substantial balance will hinder a business credit score. If a business can pay off the balances and keep them low, it will raise a business credit score.

3. Monitor the credit accounts of the business on a regular basis. Too many times businesses will have so many credit accounts they will fail to keep track of them. Even the smallest account that reports negative information to a credit bureau can significantly damage a credit score. The monitoring of all the credit accounts will help a company raise a business credit score.

4. Hire an outside agency to monitor all of the business credit activity. Sometimes the size of the company can limit its ability to monitor the credit situation effectively. That is when it prudent to hire an outside monitoring firm that will keep track and help raise a business credit score.

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